PSA Seeks Cuts in Overtime Pay

PSA Peugeot Citroen will ask its hourly workers in France to accept lower pay for night shifts and overtime as part of a concessions package, Bloomberg News reports.

The news service cites an unidentified source who says that in return, the company is offering to freeze base wages and not close additional French plants.

PSA is meeting today with its unions to discuss ways to reduce labor costs.

The company wants to reduce wage premiums for overtime and night shift work by as much as 25% and 15%, respectively, according to Bloomberg. It adds that PSA seeks more flexible work rules that would allow it to furlough workers on days when no production is needed.

The company's turnaround plan targets annual cost cuts of €600 million by 2016. The restructuring includes eliminating 11,200 jobs in France by 2015 and closing its Aulnay assembly plant outside Paris.